Islamic Ethical Values Driving Sustainable Entrepreneurial Behavior in Small and Medium Enterprises

Ananda Rauf NurHidayah Isnaini

doi:10.55980/esber.v4i2.377

Authors

Ananda Rauf NurHidayah Isnaini Universitas Islam Negeri Sunan Kudus, Kudus, Indonesia

DOI:

https://doi.org/10.55980/esber.v4i2.377

Keywords:

Islamic Ethical Values, Sustainable Entrepreneurship , Business Ethics , corporate social responsibility

Abstract

This study investigates the role of Islamic ethical values in driving sustainable entrepreneurial behavior in Small and Medium Enterprises (SMEs). Using a Systematic Literature Review approach, the research synthesizes interdisciplinary findings on Islamic business ethics, sustainability, and SME practices to identify conceptual patterns linking faith-based values with responsible entrepreneurship. The review reveals that principles such as justice, trustworthiness, social welfare, and environmental stewardship shape entrepreneurial decision-making beyond short-term profit orientation. These values encourage SMEs to adopt socially responsible practices, strengthen community engagement, and integrate environmentally conscious operations into their business models. The findings also indicate that Islamic ethical frameworks contribute to organizational resilience and long-term orientation by aligning moral commitments with strategic business sustainability. Theoretically, the study advances the ethics-based entrepreneurship literature by integrating faith-based moral reasoning into sustainability discourse and extending conventional models of ethical entrepreneurship to include spiritual and socio-cultural dimensions. Practically, the results highlight the importance of ethical leadership, institutional support, and value-driven governance structures in enabling SMEs to implement sustainable practices effectively. Overall, the study demonstrates that Islamic ethical values provide a coherent normative and practical foundation for fostering balanced economic performance, social responsibility, and environmental sustainability within SME contexts.

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